If you’re an independent contractor, you probably already know that you need to have contractor liability insurance in Arizona, Nevada, and most other states in the country to legally operate. However, you might not be sure what exactly contractor liability insurance protects against—or why you even need it in the first place.
Contractors general liability is a type of insurance policy that protects your business against third party claims and injuries arising from your work or the work of your employees. This type of insurance doesn’t financially compensate you as the business owner—instead, your insurance policy covers legal representation and court-awarded payments in your steed.
For example, let’s say that you’re working on installing a new paved walkway in a homeowner’s backyard. The homeowner walks into the backyard, trips over an unfinished section of the walkway, and sprains his ankle. After receiving medical treatment, the homeowner sues your business for the cost of his medical bills.
In this situation, contractor general liability insurance would provide you with legal representation if the homeowner’s case went to court. If the judge decides that you are indeed responsible for the homeowner’s medical bills, your insurance policy would also cover the payout. On the other hand, if you don’t have general liability insurance, you would be personally responsible for covering all of these costs out-of-pocket.
Contractors general liability insurance is a legal requirement to operate and work in most states. If you don’t already have contractor liability insurance in Nevada, you might be leaving yourself at-risk of an expensive lawsuit or fine. DJM Insurance Services offers a wide range of insurance products, and can help you get the mandatory coverage that you need to protect your livelihood. Give our team a call today to learn more and get started!